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Successful property investors need to write down their top five priorities and look to remove emotions around buying, according to an industry expert.
In a recent episode of The Reason, Cohen Handler’s Simon Cohen and Leon Jacques explain how buyer’s agents fall into two categories for their clients, with each forming a very different role when it comes to the emotional state of a buyer.
Mr Cohen noted that some buyer’s agents specialise in investing while others specialise in the more emotional aspects of house buying for a client.
However, he suggested that both reflect on their top five priorities to make sure they can secure the perfect property regardless of whether they are an owner-occupier or investor.
“Whenever you’re looking at a property, write down your top five priorities. And whenever we are looking at a property, let’s tick off those top five priorities and take emotion out of it by always reverting to it,” Mr Cohen said.
Mr Cohen believes that good buyer’s agents fall into two distinct categories.
“There are two different types of buyer’s agents: ones that specialise in investment and ones that specialise in house buying.
“In investment, there can be no emotion whatsoever because as an investor, it comes down to dollars and cents.”
“When it’s a house you’re buying, there is emotion that comes into it. It’s just about making sure you tick those boxes,” Mr Cohen said.
Mr Jacques said investors who buy with emotion, especially on their first property, are likely to make a mistake, which can have a detrimental impact on their portfolio moving forward.
“If you’re looking for good capital growth and you buy property in a performing area but it doesn’t grow, getting to that second property may never happen or will take a lot longer.
“So, it is really about taking a deep breath, analysing everything before making a decision. If we miss out and the price goes too high, it is important to walk away,” Mr Jacques said.
Mr Cohen also shared his tips to make sure he can take the emotion out of buying, to ensure he gets the best outcome as an investor.
“The property is never for me, so I am always unemotional as it is what I learnt. It is like a doctor who has to give bad news to people, you just stick to the brief and get used to it.
“Again, I reflect back to the top five points and what makes a good investment and what makes a bad one,” Mr Cohen concluded.